A "major reversal" in US cryptocurrency regulation has just unfolded.

The originally scheduled push for the Clarity Act in early 2026 was highly anticipated—this bill was supposed to break the years-long regulatory chaos in the US digital asset market and clarify the division of authority between the SEC and CFTC. The industry generally saw it as a beacon of hope that could end the reactive enforcement and regulatory overreach.

However, within 48 hours of the Senate Banking Committee releasing a new draft, the situation completely reversed. Coinbase and other leading exchanges collectively hit the pause button and withdrew their support.

Coinbase CEO Brian Armstrong was straightforward: "Our team carefully studied the new draft and found that its provisions not only fail to solve the problems but actually impose illegal constraints on legitimate businesses. Instead of supporting a flawed bill, it's better to have no bill at all."

What does this shift reveal? Industry players have realized that this so-called "clarification of regulation" bill is actually a means of re-regulating—potentially making the situation worse than it is now. From hope to disappointment, it took only two days. The Senate's vote has now been indefinitely postponed, and the industry is waiting and observing.